Insiders who bought Beacon Roofing Supply, Inc. (NASDAQ:BECN) Stocks of the last 12 months were well rewarded last week. The company’s market value increased by $521 million as the stock gained 13% over the same period. In other words, the original $750,000 purchase is now worth $936,000.
While we would never suggest that investors should base their decisions solely on the actions of a company’s directors, we think it foolish to ignore insider trading entirely.
Check out our latest analysis for Beacon Roofing Supply
The insider transactions for the past 12 months at Beacon Roofing Supply
The largest single purchase by an insider in the last 12 months came when insider Martin Harrell bought $500,000 of stock at $55.50 per share. We like to see a buy, but this buy was made well below the current price of $72.82. Since the shares were purchased at a lower price, this purchase doesn’t tell us much about how insiders view the current share price.
Martin Harrell purchased 12,86,000 shares during the year. The average price per share was $58.34. You can see the insider transactions (of companies and individuals) in the last year in the table below. If you click on the graphic, you will see all individual transactions, including share price, individual transaction and date!
NasdaqGS:BECN insider trading volume June 9, 2023
Beacon Roofing Supply isn’t the only stock insiders are buying. For those who like to find successful investments The free A list of growing companies with recent insider purchases might be just the ticket.
Insider ownership of Beacon Roofing Supply
Many investors like to check how much of a company is owned by insiders. I think it’s a good sign when insiders own a significant number of shares in the company. Insiders own 0.6% of the stock in Beacon Roofing Supply, which is valued at about $27 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to indicate a consensus between insiders and the other shareholders.
So what does this data say about Beacon Roofing Supply Insiders?
There have been no insider transactions in the past three months — that doesn’t mean much. On the positive side, last year’s transactions are encouraging. Overall, we don’t see anything to make us believe Beacon Roofing Supply insiders doubt the company, and they own stock. So while it’s helpful to know what insiders are doing when buying or selling, it’s also helpful to know the risks a particular company faces. In conducting our analysis, we found that Beacon Roofing Supply did 1 warning sign and it would be unwise to ignore it.
But note: Beacon Roofing Supply might not be the best stock to buy. So take a look free List of interesting companies with high ROE and low leverage.
Insiders within the meaning of this article are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private disposals, but not derivatives transactions.
Assessment is complex, but we help make it simple.
Find out if Beacon Roofing Supply might be over or under rated by viewing our comprehensive analysis Fair value estimates, risks and cautions, dividends, insider trading and financial health.
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This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts solely using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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